§ Q2. Mr. Lathamasked the Prime Minister what items she intends to discuss with President Reagan in May at the economic summit.
§ The Prime MinisterDiscussion is likely to concentrate on the state of the world economy, the prospects for lasting recovery, the risks of protectionism, and the problems of debtor countries, but it is too soon to say definitely what the agenda will be. I certainly expect to have bilateral talks with President Reagan at the same time.
§ Mr. LathamWhen my right hon. Friend meets the President, will she stress that America cannot get on the mend by transferring its economic problems to the rest of the Western nations, and that if we are to avoid destabilising changes in the exchange rate and interest rates America will have to do something about its budget deficit?
§ The Prime MinisterI believe that the United States Administration recognise the problems that a large deficit creates, not only for their own economy, but for economies in the other parts of the world—our economy and European economies. I believe that in the recent budget they have made provision to reduce those deficits, and it is important for all of us that they succeed in that objective.
§ Mr. David SteelWhile it is obviously right that the world economic problems should be dealt with at this summit, will the Prime Minister confirm that today's unemployment figures mean that unemployment in this country has risen during her period of office twice as fast 415 as in the other countries of the European Community? Will she therefore accept at least half the responsibility for the figures?
§ The Prime MinisterI understand that the right hon. Gentleman is asking about the speed at which unemployment has risen. It has risen faster in this country than in some others, and in other cases it has risen faster in other countries. Let me give the figures. These are the actual figures published in each country—the crude figures. In the United Kingdom, from May 1979 to December 1982 there was an increase in unemployment of 135 per cent.; in Germany, from May 1979 to December 1982 there was an increase in unemployment of 140 per cent. and in the Netherlands, from May 1979 to November 1982 there was an increase in unemployment of 186 per cent.
§ Sir Hugh FraserMay I ask my right hon. Friend whether full preparation has been made for this summit, which will be of vital interest to the Western world because of the worldwide depression? Will she give us an assurance that sufficient work has been done on the control, not just of interest rates, but of the rates of exchange, and on reorganising the immense debt that is now weighing down our production chances and opportunities?
§ The Prime MinisterAll those matters are the subject of studies that are going on now, before the summit in May.
§ Mr. Arthur LewisWhile the Prime Minister is discussing economic matters with President Reagan, will she point out to him that although it might be good for the American economy to supply aggressive Lockheed Hercules bomber aeroplanes to Argentina, it is in fact breaking an agreement that America has with us not to supply warlike materials to Argentina? Will she ask the United States to stop supplying aggressive war materials to any Fascist country?
§ The Prime MinisterI know that certain matters about supplying armaments from the United States to Argentina are under consideration. We made strenuous representations that such armaments should not be supplied, and I believe that at the moment only spares are being supplied. However, I shall check on that, following the hon. Gentleman's question.